Right here’s the excellent news: The Hershey Co. says it’s not elevating costs for Halloween candy this yr.
However right here’s the unhealthy information: Hershey and different chocolate makers are continuing to hike prices, saying a volatile cocoa market provides them no selection.
Hershey, the maker of Reese’s, Whoppers, barkThins and different chocolate candies, stated Wednesday that will probably be elevating U.S. retail costs later this fall. In some circumstances, pack sizes will get smaller; in others, record costs will rise. The common value improve will probably be within the low double-digit percentages.
“This transformation will not be associated to tariffs or commerce insurance policies. It displays the truth of rising ingredient prices together with the unprecedented value of cocoa,” Hershey stated in a press release.
Hershey confused that the value will increase gained’t apply to merchandise specifically packaged for Halloween.
On Tuesday, Swiss chocolatier Lindt stated it raised costs by 15.8% within the first half of this yr. The corporate stated it was in a position to offset a number of the increased value of cocoa with long-term contracts however needed to move a lot of it on to customers.
“The event of the worldwide chocolate market within the first half of 2025 was a continuation of what we noticed in 2024, with cocoa costs remaining near report highs,” stated Adalbert Lechner, Lindt’s CEO, in a convention name with buyers.
Cloetta, a Swedish confectionary company, advised buyers final week that it raised chocolate costs within the second quarter. And Nestle raised U.S. costs for merchandise like Toll Home chocolate chips within the spring.
Cocoa costs have greater than doubled over the previous two years due to poor weather and illness in West Africa, which provides greater than 70% of the world’s cocoa.
Cocoa futures, that are binding contracts for a selected amount of cocoa, stood at $7,380 per metric ton on Wednesday, in keeping with the Worldwide Cocoa Group, which releases a every day common of costs in London and New York.
That’s down from December’s peak of $11,984, but it surely’s nonetheless 121% increased than two years in the past.
And the scenario stays risky. In accordance with the Worldwide Cocoa Group, costs surged in early June on issues about manufacturing in Ivory Coast however eased on optimistic forecasts for manufacturing in Ghana and Latin America. They rose once more in late June after heavy rains in West Africa, which might worsen the outbreak of ailments that hurt crops.
“It’s virtually a bit harmful to touch upon this as a result of it’s altering so quick,” Cloetta Chief Monetary Officer Frans Ryden stated final week in a convention name with buyers. “That is one thing that’s transferring vastly up and down on a regular basis.”
In the meantime, costs have been rising on retailer cabinets. The common unit value of a chocolate bar within the U.S. in July 2021 was $2.43, in keeping with Nielsen IQ, a market analysis firm. As of final week, it was $3.45, a 41% improve.
That’s hurting buyer demand. Nielsen stated unit gross sales of chocolate fell 1.2% within the yr ending July 12.
Tariffs might additionally impression U.S. costs. President Donald Trump threatened a 21% tariff on cocoa and different merchandise from Ivory Coast in April, for instance, however then paused the tariffs’ implementation.
The Nationwide Confectioners Affiliation is asking the Trump administration to guard cocoa from tariffs. The group says the U.S. imports almost $4.4 billion in chocolate, cocoa and candies annually, and the affiliation’s members export almost $2 billion in American-made sweets and sweet yearly.
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